Income Tax Department Issues ₹244 Crore Demand Notice To YES Bank

Mumbai: Private sector lender YES Bank has received a fresh tax demand notice from the Income Tax Department, seeking an additional ₹244.20 crore in taxes.

This demand is linked to a reassessment and rectification process for the assessment year (AY) 2016–17, and was issued by the Jurisdictional Assessing Officer (JAO) in Mumbai.

The latest notice includes revised interest calculations, and follows a previous income tax demand of ₹2,209 crore for AY 2019–20, which was served to YES Bank last month.

In its regulatory filing, the beleaguered bank stated that it would file a rectification application and may also appeal the order. “The Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position and does not expect any material adverse impact on its financial, operational, or other activities due to the said order,” YES Bank said in a statement.

The bank further claimed that the tax department’s reassessment order erroneously considered the income reported in the return of income instead of the assessed income while computing the reassessed income and tax. It added that the JAO has since passed a rectification order, correcting the error and recomputing the tax demand.